rwenzori farmers decry high interest rates by commercial banks

By Ronald Kule, Kasese
Farmers under cooperative societies in Rwenzori region have decried high interests and unfriendly conditions tagged on commercial banks loans that are frustrating their agricultural activities.

According to Bridget Muhindo the treasurer Bigando Maize Farmers’ Cooperative Society in Rugendabara town council, Kasese district, farmers are suffering a lot in accessing commercial bank loans which ask for more than what the farmers have.

She made her concerns on Thursday in a meeting of private sector players at Virina gardens adding that most commercial banks are instead reaping much from farmers in terms of exorbitant interests, leaving the farmers to suffer with loan financing.

She asked Bank of Uganda through Agricultural Credit Facility and Microfinance Support Center to come on ground and sensitize local farmers on how to access low interest loans from government to finance their farming activities.

However according to the chief coordinator operation wealth creation Gen Salim Saleh despite government willingness to finance commercial farmers with soft loans, the challenge still remain with extension services, input supply management and agricultural business development services.

He also noted that most farmers were wasting a lot of time in cotton farming without getting much money from it thus advising them to diversify to other commercial agricultural enterprises. END

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